OJSC «Salavatsteklo» - is one of the largest Russian enterprises manufacturing sheet glass and products made from sheet glass. The basic consumers of the enterprise’s products are companies in the Russian construction sector (double-glazed windows and thermal insulation), domestic automobile manufacturers (automobile glass, headlights, etc.), container consumers. The enterprise was founded in 1956, in 1962 when the first industrial plant had been launched, the first batch of sheet glass was produced.
Starting situation
In late 1990s the enterprise entered into a crisis situation, there was a threat of losing some production lines. A lack of efficient decision making and weak controllability of individual parameters of the marketing policy had led to an almost complete loss of market positions in some lines of the business and a decrease in financial performance indicators. The basic manufacturing was losing money, the essential accounts payable and accounts receivable were accumulated.
Activity of the management of the company and GK «ROEL»
During the project realization the form of the company’s restructuring was analyzed and on this basis the "ROEL" Group experts developed the concept of creating a holding. Within this framework a management company was created. The business was divided into seven product lines (commodity glass, auto glass, double-glazed windows, container-glass, soluble sodium silicate and liquid glass, consumer goods, heat and sound insulating materials), each product line became an independent business unit on the market. All business service processes and functions were also made into independent divisions with a market orientation. In the enterprise a client service center was created and this allowed the centralization of communications with current and potential clients and reduced the purchase procedure times for clients by 2.5 to 3 times.
The company’s document distribution and communications within the company and with partners and clients were completely automated and transferred into electronic format.
A bonus system and wages were strictly tied to work performance results.
A complete system of financial control permitted monthly financial verifications every 10 days and every month, a "plan/actual" system and budget discipline.
Achieved results
Implementation of new marketing and sales technologies allowed a significant achievement in the growth of revenues and a reduction in production costs. New markets were opened, new trade channels (including Internet sales) were mastered.
From 1998 to 2001 the volume of product manufacturing had increased almost 2.5 times; in 2001 the production volume indicator had exceeded the same indicator of 1962 by 145 times and reached the highest production volume since launch time. Production profitability had grown more than 3 times and achieved 21%. Return on Equity had increased 17 times and reached 32%.
Currently the enterprise accounts for 18% of the industrial glass market, successfully competing with Chinese suppliers and international glass manufacturers. The company’s product is delivered in 47 regions of Siberia, Uralsky and Privolzhsky federal districts. The enterprise was sold to a profile investor in 2001.
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